Northern Trust (NASDAQ:NTRS – Get Rating) and First National Bank Alaska (OTCMKTS:FBAK – Get Rating) are both finance companies, but which is the best investment? We’ll compare the two companies based on their risk strength, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Institutional and insider ownership

81.4% of Northern Trust shares are held by institutional investors. 0.6% of the shares of Northern Trust are held by insiders of the company. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company is poised for long-term growth.

Valuation and benefits

This chart compares revenue, earnings per share (EPS), and valuation of Northern Trust and First National Bank Alaska.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Northern Trust $6.49 billion 3.23 $1.55 billion $7.34 1:70 p.m.
First National Bank Alaska $174.22 million 4.72 $58.41 million $18.62 13.94

Northern Trust has higher revenues and profits than First National Bank Alaska. Northern Trust trades at a lower price-to-earnings ratio than First National Bank Alaska, indicating that it is currently the more affordable of the two stocks.

Analyst Notes

This is a breakdown of recent ratings and target prices for Northern Trust and First National Bank Alaska, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Northern Trust 1 4 9 0 2.57
First National Bank Alaska 0 0 0 0 N / A

Northern Trust currently has a consensus price target of $120.19, suggesting a potential upside of 19.52%. Given Northern Trust’s likely higher upside, stock analysts clearly believe Northern Trust is more favorable than First National Bank Alaska.

Dividends

Northern Trust pays an annual dividend of $2.80 per share and has a dividend yield of 2.8%. First National Bank Alaska pays an annual dividend of $12.80 per share and has a dividend yield of 4.9%. Northern Trust pays 38.1% of its profits as a dividend. First National Bank Alaska pays 68.7% of its profits in the form of dividends. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Northern Trust has increased its dividend for 1 consecutive years.

Profitability

This table compares the net margins, return on equity, and return on assets of Northern Trust and First National Bank Alaska.

Net margins Return on equity return on assets
Northern Trust 23.13% 14.82% 0.93%
First National Bank Alaska N / A 10.63% 1.06%

Volatility and risk

Northern Trust has a beta of 1.12, suggesting its stock price is 12% more volatile than the S&P 500. By comparison, First National Bank Alaska has a beta of 0.27, suggesting its stock price is its stock is 73% less volatile than the S&P 500.

Summary

Northern Trust beats First National Bank Alaska on 11 of 16 factors compared between the two stocks.

About Northern Trust

(Get a rating)

Northern Trust Corporation, a financial holding company, provides wealth management, asset management, asset management and banking solutions to businesses, institutions, families and individuals worldwide. It operates in two segments, Corporate & Institutional Services (C&IS) and Wealth Management. The C&IS segment offers asset servicing and related services, including custody, fund administration, investment operations outsourcing, investment management, investment risk and analytical services , benefits services, securities lending, foreign exchange, cash management, brokerage services, transition management services, banking and cash management services. This segment serves corporate and public pension funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds and other institutional investors. The Wealth Management segment offers trust, investment management, custody and philanthropy; financial advice; guardianship and estate administration; advice to family businesses; family financial education; brokerage services; and personal and business banking. This segment serves high net worth individuals and families, business owners, executives, professionals, retirees and established private businesses. The Company also provides asset management services, such as active and passive stocks; active and passive fixed income; finance management; alternative asset classes including private equity and hedge funds of funds; and multi-manager advisory services and products through separately managed accounts, mutual and collective banking funds, registered investment companies, exchange-traded funds, non-U.S. collective investment funds and investment funds unregistered individuals. Additionally, it offers overlay services and other risk management services. The company was founded in 1889 and is based in Chicago, Illinois.

About First National Bank Alaska

(Get a rating)

First National Bank of Alaska logoFirst National Bank Alaska, a commercial bank, offers a variety of business, industrial, and personal banking products and services primarily in Alaska. The company offers savings and checking accounts; money market deposits and safe deposit services; certificates of deposit; individual retirement accounts; and personal, real estate and construction loans, as well as loans for stability and growth. It also provides cash, trusts, investments and wealth management; Bank card; and escrow and contract collection, and merchant services. Additionally, the company offers debit and credit cards, online and mobile banking, and convenience banking. It operates through 27 branches. The company was founded in 1922 and is based in Anchorage, Alaska.



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